SB191: relative to road toll registration surcharges for electric vehicles.

SB 191-FN - AS AMENDED BY THE SENATE

02/09/2023 0268s

2023 SESSION

23-0798

02/08

SENATE BILL 191-FN

AN ACT relative to road toll registration surcharges for electric vehicles.

SPONSORS: Sen. Watters, Dist 4; Sen. D'Allesandro, Dist 20; Sen. Fenton, Dist 10; Sen. Lang, Dist 2; Rep. McConkey, Carr. 8; Rep. Sykes, Graf. 14

COMMITTEE: Ways and Means

ANALYSIS

This bill establishes a registration surcharge for electric vehicles and requires the division of motor vehicles and department of transportation to report annually on the surcharge revenue and use of funds.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02/09/2023 0268s 23-0798

02/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Three

AN ACT relative to road toll registration surcharges for electric vehicles.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Legislative Findings. Electric vehicles contribute to the reduction of air pollution in New Hampshire and serve an important role in transitioning the transportation sector to clean energy. Electric vehicles will be a component in the use of battery storage in transactive distribution networks to reduce energy costs and add resilience to the New Hampshire distribution and transmission network. Electric vehicle service equipment availability promotes tourism as well as adoption of electric vehicles by New Hampshire consumers. The adoption of electric vehicles will lead to a decline in New Hampshire road toll revenues derived from transportation fuel taxation, so there should be a fee for electric vehicles to offset these losses of revenue and to assist in funding EVSE on state roads, highways, and turnpikes.

2 New Section; Electric Vehicle Registration Fee to be Collected. Amend RSA 261 by inserting after section 141-b the following new section:

261:141-c Electric Vehicle Registration Fee to be Collected.

I. Battery electric vehicles and plug-in hybrid electric vehicles, as defined in RSA 236:132, I and V, shall be assessed a surcharge of $100 on annual registration, to be deposited in the highway fund. The department of transportation is authorized to dedicate no more than 20 percent annually of collected fees for the construction of electric vehicle service equipment on New Hampshire transportation corridors, utilizing plans developed by the department in consultation with the department of environmental services, the New Hampshire transportation council, and Drive Electric NH. The department of safety, division of motor vehicles shall determine necessary procedures for determining vehicles subject to this surcharge.

II. The division of motor vehicles and the department of transportation shall report annually on or before January 1 of each year to the New Hampshire transportation council, speaker, president, and chairs of house and senate transportation committees on the surcharge revenue and the use of funds for electric vehicle service equipment under this section.

3 Effective Date. This act shall take effect January 1, 2024.

LBA

23-0798

Revised 2/21/23

Amended 2/13/23

SB 191-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2023-0268s)

AN ACT relative to road toll registration surcharges for electric vehicles.

FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2023

FY 2024

FY 2025

FY 2026

Appropriation

$0

$0

$0

$0

Revenue

$0

$400,000

$800,000

$800,000

Expenditures

$25,000

$0

$48,000

$96,000

Funding Source:

[ ] General [ ] Education [ X ] Highway [ X ] Other - Restricted - Cost of Collection/Administration*

*Pursuant to Part II, article 6-a of the New Hampshire constitution, any costs associated with the collection and administration of Highway Funds by the Department of Safety shall be deducted by the Department before such funds are credited to the Highway Fund as unrestricted revenue.

LOCAL:

Revenue

$0

$0

$48,000

$96,000

Expenditures

$0

$0

$0

$0

METHODOLOGY:

This bill establishes a $100 annual registration surcharge for electric vehicles, which would be credited to the state highway fund. The bill stipulates the Department of Transportation is authorized to dedicate no more than 20 percent annually of collected fees for the construction of electric vehicle service equipment on New Hampshire transportation corridors, utilizing plans developed by the Department in consultation with the Department of Environmental Services, the New Hampshire transportation council, and Drive Electric NH. It should be noted that this bill provides no highway fund appropriation, therefore any expenditure of revenue collected attributable to this bill would require further authorization (legislation or approved transfer from highway fund surplus).

The Department of Safety states there are approximately 8,000 registered electric and plug-in hybrid vehicles that would be subject to the $100 surcharge, therefore generating an estimated $800,000 per year in new revenue ($400,000 in FY 2024 since the effective date of this bill is January 1, 2024). Also, pursuant to RSA 235:23 (“Apportionment A”), 12 percent of road toll and motor vehicle fees collected are distributed to municipalities in the year following collection, therefore this bill will increase state highway fund expenditures and local revenue beginning in FY 2025 ($48,000 in FY 2025, and $96,000 in FY 2026 and each year thereafter).

Lastly, the Department states it would incur one-time system programming costs of $25,000 in FY 2023 to implement the provisions of this bill.

AGENCIES CONTACTED:

Department of Safety